Professional liability refers to the legal responsibility that professionals, such as doctors, lawyers, and accountants, have to their clients. This type of liability arises when a professional fails to provide the expected standard of care or service, leading to financial loss or harm to the client. For instance, if a doctor misdiagnoses a patient, the patient may seek compensation for the resulting damages.
To protect themselves from potential claims, many professionals carry professional liability insurance. This insurance helps cover legal costs and any settlements or judgments that may arise from lawsuits. By having this coverage, professionals can focus on their work without the constant worry of financial repercussions from potential mistakes.